KFG Resources Announces Stock Option Plan Amendment, Election of Directors

NATCHEZ, MISSISSIPPI - KFG Resources Ltd. (the "Company" or "KFG"), an independent emerging North American natural gas exploration and production company, is pleased to announce an amendment to its stock option plan.

The amendment to the stock option plan adopted by the Directors of the Company, increasing the number of common shares reserved for issuance from 1,200,000 to 4,200,000, being just under 10% of the issued and outstanding shares of the Company presently outstanding, was ratified by disinterested shareholders of KFG at the annual and special meeting held on September 12, 2008.  The amendment of the stock option plan is subject to final approval of the TSX- V.

In other business conducted at the meeting, shareholders re-elected Robert Kadane, Keith Pople and Michael Raftery as directors of the Company.  Davidson & Company were re-appointed as the Company's auditors.

For further information please contact:
KFG Resources Ltd.,
118 Lower Woodville Road,
Natchez, Mississippi, 39120
Phone (303) 825-7080

Mr. Robert A. Kadane,
President

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release."